COMMISSIONER OF WEALTH TAX Vs. PARWATIBAI TRUST

JUDGEMENT

(1.) In this Reference at the instance of the revenue, the following questions have been referred for our opinion in respect of assessment year 1980-81:-

(2.) The following question proposed by the revenue was not referred by the Tribunal and the revenue has not filed any reference application for the said question:- "Whether in law and on facts, the Appellate Tribunal is right in holding that the assessee trust has to be treated as a specific trust and not a discretionary trust as held by the Wealth-tax Officer?"

(3.) The respondent-assessee is a trust created by late Girdharlal Amratlal by a deed of settlement dated 15.12.1934 for the benefit of his five daughters. Since question No.1 as proposed by the revenue is not referred by the Tribunal, we need not go into details of the facts regarding the nature of the trust and we proceed on the basis that the assessee-trust is a specific trust as already held by the Tribunal. The controversy is only about applicability of the provisions of Section 5(1)(xxiii) of the Wealth-tax Act, 1957 which at the relevant time read as under:-